lululemon investor presentation 2020 lululemon investor presentation 2020

Obviously, the environment's really dynamic and fluid today. And in fact, those behaviors are what gave us the conviction and confidence to go ahead with the MIRROR acquisition because we saw a natural synergy between the two. It's really driven throughout the performance on top-line and leverage on occupancy and depreciation and then we do, at this point in time, we're maintaining our Power 3 growth plan which caused calls for modest expansion in gross margin as you lookout. Comparable sales increase 20% Trending: Addressable Market . Canada-based Lululemon completed the acquisition July 7. Finally, our adjusted EBITDA for Q4 remained strong at 19.8 million . Our Unique Proposition. Industry. We are committed to serving the best interests of our shareholders. At an Analyst Day presentation in April 2019, CEO Calvin McDonald mentioned that more than seven million active guests shopped at Lululemon during 2018. The Motley Fool owns shares of and recommends Lululemon Athletica and Nike. Ike Boruchow -- Wells Fargo Securities -- Analyst. %PDF-1.6 % Looking at the second quarter, our results reflected broad-based strength across our channels, regions, and product categories. So it is a reflection of the industry. Two quick ones, I guess, on gross margin sustainability. We have our eyes on the long game with MIRROR and the community we're building. Here you will find key information and financial reports, puttingtheperformance oflululemon athleticaincinto perspective for you. A right to revoke your consent: When our processing is based on your consent, you have the right to revoke such consent at any time. A limited-edition capsule evolving fashion and function for the ever-expanding needs of modern life. We also retain personal data for as long as you have your account, or as long as is needed to be able to provide the services or products to you, or (in the case of any contact you may have with our Guest Education Centre) for as long as is necessary to provide support-related reporting and trend analysis. 7. lululemon.org: Establish a lululemon centre of excellence for social impact to support wellbeing by 2021. Please go ahead. 8. And I have a quick follow-up for Meghan. Internet Retail. Announces Second Quarter Fiscal 2022 Earnings Conference Call, lululemon Expands International Footprint, Launching in Spain, lululemon athletica inc. Lululemon - Investor Presentations and Pitch Decks. or Vancouver yoga-togs merchant Lululemon . June 24, 2020 . CEO Elon Musk took the stage to share his "Master Plan 3," and to discuss how Tesla plans to . Welcome to the Lululemon Athletica second-quarter 2021 earnings conference call. Canada and continues to spread in We are, as I mentioned, managing accordingly. Not only were these initiatives the right thing to do for our people, but they kept our workforce whole and have enabled us to reopen stores with a full complement of educators and leadership teams and they are directly contributing to the strong results we've generated over the last several quarters. Lululemon stock took a beating after lowering guidance for the fourth quarter, falling 9%. $518.5 million 02/17/21. Q4 2020: HTML Open 2020 Q4 2020 Press releases: Show 2020 Q4 2020 webcast: Thanks for squeezing me in. That's enough to turn a $10,000 investment into $400,000. The reduction relative to last year is due primarily to deductions related to stock-based compensation. Our annual range also assumes the factories we used to source products in Vietnam begin a phased reopening in mid-September. The next question comes from Ike Boruchow with Wells Fargo. Guys, let me add my congrats on a really nice quarter. We believe that disclosing these measures on a constant dollar basis is useful to investors because it enables them to understand the level of growth of our business. Key Takeaways. You can refer to our earnings release for more information and reconciliations to our GAAP metrics. Our activation pairs our ambassadors with fitness instructors from the local community to lead over 140 complimentary fitness classes. And then I guess just to wrap that question up, how does this impact the concept's ability to reach breakeven? Good. "When you compare that to other brands, that is very high," McDonald said. And you've heard me say this before, this brand is early innings across products with activities, where we focus on run train yoga in OTM, categories within those activities, and both our men's and women's business. Excellent. Announces First Quarter Fiscal 2022 Earnings Conference Call. *Average returns of all recommendations since inception. , at Comps increased 4% on top of the 157% increase last year. On June 29, 2020, Lululemon announced its intention not to be left behind. tax reform and taxes on repatriation of foreign earnings. Here you will find key information and financial reports, putting the performance of lululemon athletica inc into perspective for you. We share personal data with third parties when we have your consent to do so. Beginning of Walmart Inc. (NYSE: WMT) hosted the virtual 2021 Investment Community Meeting on February 18, 2021. To learn more, see our. It's made from a proprietary Ultralu fabric and expands our offering into the high-impact training category. Yeah, thanks, Erin. Lululemon is a yoga and exercise apparel company, whose business strategy is based on marketing a lifestyle rather than a product. And I'll start there because I think those to me are the most important and signal the health and the engagement of the community both with each other as well as near the product. And when you're going to air freight products, is that airfreight for upside or is that airfreight to potentially meet holiday demand? With this strategy firmly in place, we've introduced fabrics and products that engineer specific on-body sensations. China, in particular, is a market where we have leaned in on an investment. How's the margin profile of the sustainable product look versus the current assortment? frP09,VPA kXshv-3S xg{'rz eP_lbIQ*bgK|5dbpdtO8kjQ*@+j*ffMuw/edeO:-^Iu{?9?cv!_(WMQ7U _7rl32!y=!_A|7c&86 hbb OFaFpoUzUz$}qWezu1wXc91 Total Total comparable sales includes comparable store sales and direct to consumer sales. 268 presentation decks . Thanks for signing up, youll soon start getting the inside scoop on the latest gear, our favourite workouts, events and much more. Brunswick Group As I've mentioned before, Lululemon's unique approach to product innovation is driven by our Science of Feel innovation platform. 4:30 p.m. Eastern time Oct 07, 2021. As you alluded, we're very happy with the overall growth in our men's business two-year CAGR of 31%. So in terms of SG&A, we guided for Q3 the 300 to 350 basis points of deleverage relative to 2019. lululemon athletica UK Ltd, located at Garden House, 57-59 Long Acre, London, WC2E 9JL (lululemon, we or us) are the data controller for the personal data we process about you in connection with the Promotion. [Operator instructions] I would now like to turn the conference over to Howard Tubin, vice president investor relations for Lululemon Athletica. Calvin McDonald We share personal data with our legal, financial, insurance and other advisors in connection with the kinds of corporate transactions described above or in connection with the management of all or part of lululemons business or operations. Quarter2, Total Gross , Chief Executive Officer, commented: "2019 was a strong year for Moving to SG&A. Woodmere, Ohio. Yes. Before handing it back to Calvin, I want to express my gratitude to the entire Lululemon collective. During the Feet Added Inclusion, Diversity, Equity, and Action: Reflect the diversity of the communities we serve and operate in around the world by 2025. Currently, the category represents mid-single-digit penetration, and we see an opportunity to grow this category into the low to mid-teens in the coming years. Before I hand it over to Meghan, I'd like to speak for a minute on labor and what we're seeing regarding store and call center staffing. Our success was our people, and honouring commitments to our landlords and vendors. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Those costs in the market are rising, which has an impact, ultimately, onto CAC. Lululemon management said as much in a 2019 analyst presentation, noting that it sees the company as being in business to solve guests' unmet needs, something that it is doing better than competitors. Investors expected lululemon athletica (LULU 1.66%) to deliver a large increase in revenue over the year-ago weakness, . We delivered positive growth in e-commerce, which is even more impressive given the strong performance one year ago, and we continue to deliver at a high level across all major categories and geographies. The strategy is organized into three interconnected areas of focusBe Human, Be Well, and Be Planetwith 12 goals to drive progress. , And just a few weeks ago, we announced our multi-year collaboration with Genomatica, a recognized leader in sustainable materials to create a lower impact plant-based nylon. For example, if you decide to participate in certain interactive areas or features of our websites, such as creating a public profile and posting your goals, you consent to the disclosure of this information to other users of our websites. Luxury Goods. Consider that in fiscal 1994, Nike sales declined 3.6% to $3.79 billion. There are obviously between bottoms and tops and shorts and outerwear and some of the accessories. Gross margin was 55.9%, an increase of 70 basis points compared to fiscal 2018. Adding these lifestyle features should translate to further robust growth over time. One is general fitness, awareness to being well, living well, to the importance of functional apparel, which is critical, and again, plays to our strength. Quarter, Number of John Ballard owns shares of Lululemon Athletica and Nike. Our freshest gear. February 2 We have always supported and invested in our people. , we temporarily closed all of our retail locations in Mainland China. rather than It also excludes the impact of any future share repurchases. To make the world smarter, happier, and richer. Creating Powerpoint presentations to Institutional Investors for the world-renowned Chief Investment Strategist, and his team of Portfolio Managers . On Thursday, reporting its third-quarter earnings results, Lululemon slashed its outlook for . Good afternoon. And the second is the power of human connection through our educators through the strength of our community and the investments we make at grassroots through our people, through our ambassador community, and then the exciting addition of MIRROR into that community. tax reform and taxes on repatriation of foreign earnings. is paul troutman still on oak island; is it sunnah to kiss your wife on forehead. VANCOUVER, British Columbia The press release and accompanying quarterly report on Form 10-Q are available under the Investors section of our website at www. 3. Announces Third Quarter Fiscal 2022 Results, lululemon athletica inc. These statements are based on current information which we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Investors have been high on the company's long-term growth prospects across growing digital and international sales, and the latest results showed continued momentum in these areas. Equally, we know that the pandemic drove forward, accelerated some of the guest behaviors that play to the strength of our brand. endstream endobj 1932 0 obj <>stream Productivity in stores returned to 2019 levels, representing continued improvement versus 88% productivity we realized in Q1 of this year. Traffic was strong and increased over 150% versus last year. Inventories at the end of fiscal 2019 increased by 28% to Switching now to International, our sales trends continue to be robust with all major regions generating strong double-digit sales growth on a two-year CAGR basis. Toronto, Canada Area. On the following pages, you will find key shareholder information and financial reports to help provide perspective on our financial news, performance and events. This included a 63% increase in North America and a 49% increase in our international business. One million four hundred sixty thousand three hundred eighty subordinate voting shares were repurchased between January 17 and July 6 . Great results. In Q3, we expect SG&A deleverage of approximately 300 to 350 basis points relative to 2019. Due to the 53rd week in fiscal 2018, the below changes in total comparable sales, comparable store sales, and direct to consumer net revenue are calculated on a one week shifted basis such that the 13 weeks ended Hi, Mark. lululemon expands its Selfcare product line with Super Fine Face Mist made to hydrate and protect post-workout skin. See active subscriptions. How much of a percentage of the assortment can this represent over time? For more information about our privacy practices in another jurisdiction, please refer to the privacy policy available in our stores, or posted on our website, for that jurisdiction. We're early, we're thinking long term, and that convergence was natural. Flying on the latest positive earnings results, Lululemon Athletica ( NASDAQ: LULU ) reached an impressive US$50b market cap in the last week. You said you were back in 2019 levels in the second quarter, which was ahead of plan, how are you planning for productivity for open stores in the back half? at the Closely monitoring the situation at this point, we do anticipate that the airfreight's environment will not improve for the balance of the year and thus, we've guided to the 150 to 200 basis points impact for this year, and we'll continue to update you as we move into '22. So in terms of Vietnam, we source approximately 30% of our finished goods. The two-year CAGR continued to accelerate. $2.28 Revenue, Adjustments due to foreign exchange rate changes. You told us you're on track to quadruple of revenues, but our -- maybe you could just give us some thoughts on the path to the profitability of the international business to go with that comment, just to bring us up-to-date. I am proud of our leaders and teams for enabling us to meet and exceed these goals. Calvin or Meghan, I guess could you elaborate a little bit on the commentary you gave? When looking at SG&A for the full year, we now expect deleverage of 10 to 30 basis points versus 2020. Given this strategic opportunity, we will suspend our membership tests that have been underway and apply the learnings to how we build out the MIRROR platform for guests. Capital expenditures were $80 million for the quarter, compared to $53 million in the second quarter last year. Comparable store sales reflects net revenue from company-operated stores that have been open for at least 12 full fiscal months, or open for at least 12 full fiscal months after being significantly expanded. Feb 14, 2023: This was never more true than last year during the pandemic. If you do link your social media account to our social media account, the social media service may share certain data about you and your activities with us in accordance with their privacy policies and your privacy settings on their services. These locations currently remain closed. . , we temporarily closed all of our retail locations in In addition, I am thrilled that we're able to achieve productivity in our open stores equal to levels we saw in 2019 and happy to see these results sooner than we expected. After the presentation, there will be an opportunity to ask questions. Feb 9, 2023. WACC . Mirror was on track to surpass US$100 million in revenue, according to a Lululemon investor presentation.) A constant dollar basis assumes the average foreign exchange rates for the period remained constant with the average foreign exchange rates for the same period of the prior year. Hi. Berkshire's profit plummeted by 91 per cent. We continue to be pleased with the performance of MIRROR, and let me highlight several initiatives we have on track for this year. I wanted to follow up on the international business and the momentum that you're seeing there. We respect your privacy and won't spam you. Let me now shift to MIRROR. Invest better with The Motley Fool. Does it create an opportunity to take some pricing to offset cost increases, whether it's in labor or other areas? I was just curious. Amounts I will now turn it over to Meghan. A conference call to discuss fiscal 2019 results is scheduled for today, That's helpful. For more information and to view the 2020 Impact Agenda, click here. for further information on these adjustments. And really driving that deleverage would be the consolidation of MIRROR for the full year, as well as investments again behind our digital channel. Lorraine Hutchinson -- Bank of America Merrill Lynch -- Analyst. Good afternoon, and let me add my congratulations. These results reflect the ongoing strength across all major areas of the business. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. That being said, we are carefully monitoring the current developments in labor markets, particularly in North America, and we remain committed to doing what's right for our store and DC team. A few more details related to these results: in 2020, we achieved our goal to double our e-commerce business. The Power 3 initiatives focusing on product, guest experience, and market expansion are still the key areas of focus that we will drive our innovation through. This result comes on top of the 157% increase in Q2 of last year, which benefited from our online warehouse sale, an event that we did not repeat this year. As I mentioned, we anticipate it will be with us for the balance of the year, and we'll update on 2022. The Black Lives Matter movement acted as a powerful catalyst within lululemon. The next question comes from John Kernan with Cowen. You may have the option to link your social media account to our social media account (such as on Facebook). We are updating our guidance for the full year. 9. North America We prioritized our people and kept our teams intact by offering pay production, sick pay, and other key people investments. We saw strong performance in our nonscrubs business, which increased 59%. For Q2, total net revenue increased 61% to $1.5 billion, above our expectations of $1.3 million to $1.33 billion. Comparable store sales increased 9%, or increased 10% on a constant dollar basis. For the full year of 2021, we now expect revenue to be in the range of $6.19 billion to $6.26 billion. We had approximately $1.2 billion in cash and cash equivalents and nearly $400 million of available capacity under our revolving credit facility. rather than Let me now share with you the details of our Q2 performance. boxer zchter saarland; neil postman: wir informieren uns zu tode errterung If you are a consumer in the European Economic Area ("EEA") or Switzerland, this privacy policy ("Privacy Policy") explains how we process your personal data when you shop in our stores, access or use our websites, register for and attend events, engage with us on social media or otherwise interact with us. Great. We expect our adjusted effective tax rate for the year to be similar to 2020. And the membership tests, although very effective, the challenge, COVID aside, was that it was challenged to scale, it was rooted in physical, and we couldn't offer it everywhere. Operator? of the Quarter, Gross Square Best of luck to the holidays. Subject to certain limitations and exceptions, you have the following legal rights regarding our processing of your personal data: A right to obtain information:You have the right to request information about how we process your personal data. Lululemon Stock. The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future." Invest better with The Motley Fool. and intangible assets, net, Deferred income taxes and other non-current assets, Accrued compensation and related expenses, Total liabilities and stockholders' equity, Adjustments to reconcile net income to net cash provided by operating activities, Net cash provided by operating activities, Increase (decrease) in cash and cash equivalents, Cash and cash equivalents, beginning of year, lululemon athletica And we achieved these results based upon our performance before, during, and as we emerge from COVID-19. We do not share personal data about you with third parties except as follows: a.Our affiliates and subsidiaries. The average price target is $469.34 with a high forecast of $548.00 and a low . And I think that combined with our ability to gain market share against our competitors is helping to fuel the business, and will continue as we look forward to the years. As you know, we also see continued growth opportunities within North America. for the fourth quarter. Making the world smarter, happier, and richer. $881.3 million March 26, 2020 Investors. , Thanks, John. Announces First Quarter Fiscal 2022 Results . Quarter Ended Joseph Teklits It seems like most of this is cyclical and much of this can be recovered fairly quickly as the supply chain begins to open up. Looking at our business over the course of the second quarter and the first half of the year, I continue to be excited about our day-to-day progress. And finally, I am pleased to share that our adjusted earnings per share for the quarter were $1.65 versus $0.96 in 2019, which is significantly ahead of our expectations. Announces First Quarter Fiscal 2022 Results, lululemon athletica inc. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, which include, without limitation: our ability to maintain the value and reputation of our brand; the acceptability of our products to our guests; the recent COVID-19 coronavirus outbreak and related government, private sector, and individual consumer responsive actions; our highly competitive market and increasing competition; our reliance on and limited control over third-party suppliers to provide fabrics for and to produce our products; suppliers or manufacturers not complying with our Vendor Code of Ethics or applicable laws; the operations of many of our suppliers are subject to international and other risks; an economic downturn or economic uncertainty in our key markets; increasing product costs and decreasing selling prices; our ability to anticipate consumer preferences and successfully develop and introduce new, innovative and updated products; our ability to accurately forecast guest demand for our products; our ability to safeguard against security breaches with respect to our information technology systems; any material disruption of our information systems; our ability to have technology-based systems function effectively and grow our e-commerce business globally; changes in consumer shopping preferences and shifts in distribution channels; the fluctuating costs of raw materials; our ability to expand internationally in light of our limited operating experience and limited brand recognition in new international markets; global economic and political conditions and global events such as health pandemics; our ability to deliver our products to the market and to meet guest expectations if we have problems with our distribution system; imitation by our competitors; our ability to protect our intellectual property rights; our ability to source and sell our merchandise profitably or at all if new trade restrictions are imposed or existing trade restrictions become more burdensome; changes in tax laws or unanticipated tax liabilities; our ability to manage our growth and the increased complexity of our business effectively; our ability to cancel store leases if an existing or new store is not profitable; increasing labor costs and other factors associated with the production of our products in South and